Planned Bahuda Port Raises Concerns Over Exclusivity Granted to Adani-Operated Gopalpur Port.

In a surprising development, state-owned Paradip Port Authority, Visakhapatnam Port Authority, Sagarmala Finance Corporation Ltd, and the Odisha government have signed a memorandum of understanding (MoU) to develop a major new port at Bahuda Muhan in Ganjam district, Odisha. This move overlooks the exclusivity clause granted to Adani Ports and Special Economic Zone Ltd (APSEZ), operator of the nearby Gopalpur Port, which holds the right of first refusal if a new port is built between Gopalpur and the Andhra Pradesh border.

Gopalpur Port, located about 20 km from Bahuda Muhan, was acquired by APSEZ in March 2024 at an enterprise value of ₹3,080 crore. Situated between Paradip and Visakhapatnam ports, the Gopalpur concession agreement signed in 2006 grants the private developer exclusivity over a roughly 50 km stretch, prohibiting the Odisha government from developing another port in this region without offering APSEZ the first opportunity to undertake the project.

Despite this, the MoU signed on September 20 in Bhavnagar, Gujarat—attended by Prime Minister Narendra Modi—commits to developing the Bahuda Muhan port as a central government project with a capacity to handle 150 million tonnes of cargo, involving an investment of ₹21,500 crore. The port will be built on more than 6,700 acres of designated coastal salt land and is expected to anchor port-led industrialisation, logistics parks, and manufacturing clusters across Odisha and northern Andhra Pradesh.

The decision has taken the port industry by surprise due to Bahuda Muhan’s location within the exclusivity zone granted to Gopalpur’s developer. Reports indicate that prior to the MoU signing, the Odisha government sought a no-objection certificate from APSEZ. While APSEZ expressed interest in developing the Bahuda Muhan port themselves and proposed conducting a feasibility study, the Odisha government proceeded with the MoU without APSEZ’s consent.

Industry experts remain skeptical about the viability of two ports operating so close to each other, pointing out that APSEZ is already investing in making Gopalpur a mega port. “There will be no market for two ports a few kilometres apart,” a port industry source said. The same source criticized the government’s decision to disregard the exclusivity agreement, calling the move by the Ministry of Ports, Shipping and Waterways “a cause of major disruption.”

The concession agreement for Gopalpur Port runs until 2036, with two possible extensions of ten years each on mutual terms, making the new port’s development at Bahuda Muhan a contentious issue in the industry and raising questions about future port infrastructure planning in the region.